By Jamie Martin
A new economic analysis shows that trade under the United States Mexico Canada Agreement continues to deliver major economic benefits to rural communities across the country. The report was released by the Agricultural Coalition for USMCA and discussed during a press conference in Washington, D.C.
"Our analysis shows that USMCA is a powerful driver for employment, investment and long-term competitiveness in the U.S. agricultural sector," said Krista Swanson, chief economist for the National Corn Growers Association, a member of the coalition. "While the agreement is due for a few targeted improvements, overall, it is critical to the farm economy and a key part of rural America's success and resilience, particularly during tough economic times like we are in now."
The study explains how agricultural and seafood exports to Canada and Mexico play a key role in supporting the U.S. farm economy. Coalition members called on leaders from all three countries to renew the agreement and make targeted improvements as it enters its formal review period.
Based on a 2024 economic model, the analysis found that agricultural and seafood exports to Canada and Mexico generated $149 billion in total economic output. This trade activity supported nearly half a million U.S. jobs and produced $36 billion in wages for workers.
The report also showed that each dollar of exports under USMCA created an additional $2.45 in economic activity across the country. In total, USMCA-related agricultural trade added $64 billion to U.S. GDP and generated $13 billion in tax revenue at the federal, state, and local levels.
Several farm sectors have seen clear gains since the agreement took effect. Fresh fruit export values increased by 34 percent, while vegetable exports rose by 14 percent. These results demonstrate how stable trade relationships support growth throughout the agricultural supply chain.
"The long‑term success of USMCA is a top priority for our members," said International Fresh Produce Association Chief Global Policy Officer Alexis Taylor. "Since the agreement took effect, fresh U.S. fruit export values have increased by 34%, while U.S. vegetable exports have grown by 14%. These gains highlight the tangible value USMCA delivers across the fresh produce supply chain and reinforce the importance of a strong, integrated North American trade environment."
The dairy industry also pointed to strong export opportunities in Mexico and Canada. Industry leaders emphasized that USMCA remains essential for maintaining access to these important markets and supporting future growth for dairy farmers.
Under USMCA rules, the three countries must begin a formal review process by July. During this review, leaders will decide whether to renew the agreement, make updates, or adjust consultation processes.
"Mexico is a very lucrative market for America's dairy farmers, and Canada too represents important export sales as well as the opportunity for more growth," said National Milk Producers Federation and U.S. Dairy Export Council Executive Vice President for Trade Policy and Global Affairs Shawna Morris.
"USMCA is vital to our ability to trade with both partners. We urge the president to renew the agreement with targeted changes that will make it even more robust and helpful to farmers," said Morris.
The coalition emphasized that renewing USMCA with targeted improvements will help protect farm income, support rural communities, and keep U.S. agriculture competitive in global markets.
Photo Credit: pexels-fauxels
Categories: National